Little Leaf Farms Raises $90M to Grow Its Greenhouse Network

by Jennifer Marston

Image from: Little Leaf Farms

Massachusetts-based Little Leaf Farms has raised $90 million in a debt and equity financing round to expand its network of hydroponic greenhouses on the East Coast. The round was led by Equilibrium Capital as well as founding investors Bill Helman and Pilot House Associates. Bank of America also participated.

Little Leaf Farms says the capital is “earmarked” to build new greenhouse sites along the East Coast, where its lettuce is currently available in about 2,500 stores. 

The company already operates one 10-acre greenhouse in Devins, Massachusetts. Its facility grows leafy greens using hydroponics and a mixture of sunlight supplemented by LED-powered grow lights. Rainwater captured from the facility’s roof provides most of the water used on the farm. 

According to a press release, Little Leaf Farms has doubled its retail sales to $38 million since 2019. And last year, the company bought180 acres of land in Pennsylvania on which to build an additional facility. Still another greenhouse, slated for North Carolina, will serve the Southeast region of the U.S. 

Little Leaf Farms joins the likes of Revol Greens, Gotham Greens, AppHarvest, and others in bringing local(ish) greens to a greater percentage of the population. These facilities generally pack and ship their greens on the day of or day after harvesting, and only supply retailers within a certain radius. Little Leaf Farms, for example, currently servers only parts of Massachusetts, Pennsylvania, New York, and New Jersey. 

The list of regions the company serves will no doubt lengthen as the company builds up its greenhouse network in the coming months.

Agritech: Precision Farming With AI, IoT and 5G

Image from: Photo by Mohd Izwan Mohd Nazam/The Edge

For a company that grows and delivers vegetables, Boomgrow Productions Sdn Bhd’s office is nothing like a farm, or even a vertical farm.

Where farms are bedecked with wheelbarrows, spades and hoes, Boomgrow’s floor plan is akin to a co-working space with a communal island table, several cubicles, comfortable armchairs, a cosy hanging rattan chair and a glass-walled conference room in the middle.

At a corner, propped up along a walkway leading to a rectangular chamber fitted with grow lights, are rows of support stilts with hydroponic planters developed in-house and an agricultural technologist perched on a chair, perusing data. “This is where some of the R&D work happens,” says Jay Dasen, co-founder of the agritech start-up.

But there is a larger farm where most of the work behind this high-tech initiative is executed. Located a stone’s throw from the city centre in Ampang is a 40ft repurposed shipping container outfitted with perception technologies and artificial intelligence (AI) capabilities that mimic the ideal environment to produce more than 50,000kg of vegetables a year.

Stacked in vertical layers, Boomgrow’s vegetables are grown under artificial lights with Internet of Things (IoT) sensors to detect everything from leaf discolouration to nitrate composition. This is coupled with AI and machine learning algorithms.

Boomgrow is the country’s first 5G-connected vertical farm. With the low latency and larger bandwidth technology, the start-up is able to monitor production in real time as well as maintain key para­meters, such as temperature and humidity, to ensure optimal growth conditions.

When Jay and her co-founders, K Muralidesan and Shan Palani, embarked on this initiative six years ago, Boomgrow was nowhere near what it is today.

The three founders got together hoping to do their part in building a more sustainable future. “I’ve spent years advising small and large companies on sustainability, environmental and social governance disclosures. I even embarked on a doctorate in sustainability disclosure and governance,” says Jay.

“But I felt a deep sense of disconnect because while I saw companies evolving in terms of policies, processes and procedures towards sustainability, the people in those organisations were not transforming. Sustainability is almost like this white noise in the background. We know it’s important and we know it needs to be done, but we don’t really know how to integrate it into our lives.

“That disconnect really troubled me. When we started Boomgrow, it wasn’t a linear journey. Boomgrow is something that came out of meaningful conversations and many years of research.”

Shan, on the other hand, was an architect who developed a taste for sustainable designs when he was designing modular structures with minimal impact on their surroundings between regular projects. “It was great doing that kind of work. But I was getting very dissatisfied because the projects were customer-driven, which meant I would end up having debates about trivial stuff such as the colour of wall tiles,” he says.

As for Murali, the impetus to start Boomgrow came from having lived overseas — while working in capital markets and financial services — where quality and nutritious produce was easily available.

Ultimately, they concluded that the best way to work towards their shared sustainability goals was to address the imminent problem of food shortage.

“By 2050, the world’s population is expected to grow to 9.7 billion people, two-thirds of whom will be in Asia-Pacific. Feeding all those people will definitely be a huge challenge,” says Jay. 

“The current agricultural practice is not built for resilience, but efficiency. So, when you think of farming, you think of vast tracts of land located far away from where you live or shop.

“The only way we could reimagine or rethink that was to make sure the food is located closer to consumers, with a hyperlocal strategy that is traceable and transparent, and also free of pesticides.”

Having little experience in growing anything, it took them a while to figure out the best mechanism to achieve their goal. “After we started working on prototypes, we realised that the tropics are not designed for certain types of farming,” says Jay. 

“And then, there is the problem of harmful chemicals and pesticides everywhere, which has become a necessity for farmers to protect their crops because of the unpredictable climate. We went through many iterations … when we started, we used to farm in little boxes, but that didn’t quite work out.”

They explored different methodologies, from hydroponics to aquaponics, and even started growing outdoors. But they lost a lot of crops when a heat wave struck.

That was when they started exploring more effective ways to farm. “How can we protect the farm from terrible torrential rains, plant 365 days a year and keep prices affordable? It took us five years to answer these questions,” says Jay.

Even though farmers all over the world currently produce more than enough food to feed everyone, 820 million people — roughly 11% of the global population — did not have enough to eat in 2018, according to the World Health Organization. Concurrently, food safety and quality concerns are rising, with more consumers opting for organically produced food as well as safe foods, out of fear of harmful synthetic fertilisers, pesticides, herbicides and fungicides.

According to ResearchAndMarkets.com, consumer demand for global organic fruit and vegetables was valued at US$19.16 billion in 2019 and is anticipated to expand at a compound annual growth rate (CAGR) of 6.5% by 2026.

Meanwhile, the precision farming market was estimated to be US$7 billion in 2020 and is projected to reach US$12.8 billion by 2025, at a CAGR of 12.7% between 2020 and 2025, states MarketsandMarkets Research Pte Ltd.

Malaysia currently imports RM1 billion worth of leafy vegetables from countries such as Australia, China and Japan. Sourcing good and safe food from local suppliers not only benefits the country from a food security standpoint but also improves Malaysia’s competitive advantage, says Jay.

Unlike organic farming — which is still a soil-based method — tech-enabled precision farming has the advantage of catering for increasing demand and optimum crop production with the limited resources available. Moreover, changing weather patterns due to global warming encourage the adoption of advanced farming technologies to enhance farm productivity and crop yield.

Boomgrow’s model does not require the acres of land that traditional farms need, Jay emphasises. With indoor farms, the company promises a year-round harvest, undisturbed by climate and which uses 95% less water, land and fuel to operate.

Traditional farming is back-breaking labour. But with precision technology, farmers can spend less time on the farm and more on doing other things to develop their business, she says.

Boomgrow has secured more than RM300,000 in funding via technology and innovation grants from SME Corporation Malaysia, PlaTCOM Ventures and Malaysia Digital Economy Corporation, and is on track to build the country’s largest indoor farms.

Image from: Boomgrow

The company got its chance to showcase the strength of its smart technology when Telekom Malaysia Bhd (TM) approached it to be a part of the telco’s Smart Agriculture cluster in Langkawi last October.

“5G makes it faster for us to process the multiple data streams that we need because we collect data for machine learning, and then AI helps us to make decisions faster,” Jay explains.

“We manage the farm using machines to study inputs like water and electricity and even measure humidity. All the farm’s produce is lab-tested and we can keep our promise that there are no pesticides, herbicides or any preserving chemicals. We follow the food safety standards set by the EU, where nitrate accumulation in plant tissues is a big issue.”

With TM’s 5G technology and Boomgrow’s patent-pending technology, the latter is able to grow vegetables like the staple Asian greens and highland crops such as butterhead and romaine lettuce as well as kale and mint. While the company is able to grow more than 30 varieties of leafy greens, it has decided to stick to a selection of crops that is most in demand to reduce waste, says Jay.

As it stands, shipping containers are the best fit for the company’s current endeavour as containerised modular farms are the simplest means of bringing better food to local communities. However, it is also developing a blueprint to house farms in buildings, she says.

Since the showcase, Boomgrow has started to supply its crops to various hotels in Langkawi. It rolled out its e-commerce platform last year after the Movement Control Order was imposed. 

“On our website, we promise to deliver the greens within six hours of harvest. But actually, you could get them way earlier. We harvest the morning after the orders come in and the vegetables are delivered on the same day,” says Jay.

Being mindful of Boomgrow’s carbon footprint, orders are organised and scheduled according to consumers’ localities, she points out. “We don’t want our delivery partners zipping everywhere, so we stagger the orders based on where consumers live. 

“For example, all deliveries to Petaling Jaya happen on Thursdays, but the vegetables are harvested that morning. They are not harvested a week before, three days before or the night before. This is what it means to be hyperlocal. We want to deliver produce at its freshest and most nutritious state.”

Plans to expand regionally are also underway, once Boomgrow’s fundraising exercise is complete, says Jay. “Most probably, this will only happen when the Covid-19 pandemic ends.”

To gain the knowledge they have today, the team had to “unlearn” everything they knew and take up new skills to figure what would work best for their business, says Jay. “All this wouldn’t have been possible if we had not experimented with smart cameras to monitor the condition of our produce,” she laughs.

“Autonomy Will Not Happen Until We Start Sharing Data”

In an emerging industry with companies eager to prove their technologies’ worth, Sensei Ag remains form-factor agnostic, meaning that the agtech company remains unbiased towards different farm hardware solutions – focusing more on software and plant biology.

Sensei Ag is a market-changing agtech company that develops agile growing solutions through a highly iterative approach to farming, focused on improving the nutritional quality of fruits and vegetables while also reducing production costs. The company combines plant science, computer vision, machine learning, automation and artificial intelligence into its growing systems.

According to Sensei Ag CEO Sonia Lo, remaining form factor agnostic is key to the company’s mission of providing hyper-nutritious food to as large a consumer base as possible, which it achieves through both vertical farms and greenhouses.

Image from: Sensei Ag

“We believe that the most robust data comes from operating farms of multiple types. So, not just vertical farms, but also low-tech and high-tech greenhouses. And with vertical farms, we are looking at a number of form factors. Our end goal is to be  a grower’s resource and know more about growing at scale with different form factors than anyone else.”

The company is also a strong advocate for open data in the vertical farming industry, which is currently lacking, as evidenced by the siloed development of multiple systems and products, some of which cannot be easily integrated into third-party systems.

“There are lots of data flows and increasingly inexpensive farm management systems. The question, then, is the organization of data into intelligence. Intelligence facilitates autonomy, and as we manage data flows, more farms can become autonomous. But I don’t think autonomy will happen until we start sharing data. For example, we saw an automation supplier with a great robot.

The problem was the robot only works in their ecosystem, so you have to buy the whole farming solution in order for the one robot to work. Ideally, that robot would be plug and play and be able to work in greenhouses and vertical farms,” says Sonia.

Image from: Sensei Ag

According to Sonia, open data in the vertical farming industry may currently be restricted by the dominance of venture financing, which has its own return mandates to fulfill and sometimes wants a “winner takes it all” mentality for the ventures it chooses to back. While such financing has allowed the vertical farming industry to emerge, it may ultimately hinder the industry’s scalability and information sharing.

“There is definitely a capital model in Silicon Valley and in venture capital world in general which is not focused on profitability but is focused on technological achievement and market penetration. We saw this in solar and in the renewables industry when multiple venture capital funds invested in solar assets. Then, the bottom fell out because government subsidies fell away in certain jurisdictions.

I hope that agricultural infrastructure currently financed by venture capital will not necessarily follow the same pathway as solar, but will instead find a public-private partnership model. At some point, these farms need to demonstrate a profit for the debt capital markets to allow scale to occur.”

Image from: Sensei Ag

By embracing open data and transparency, Sonia explains that the vertical farming industry can further mature and iterate with technology to continue lowering costs. By continuously collecting and sharing data from different farm forms, the vertical farming industry would have better insights into the true costs which, according to Sonia, “helps drive scale because it enables the finance community to understand how the farms can be risk assessed and financed.”

Looking ahead, Sensei Ag hopes to form partnerships around the world to bring its innovative, data-driven growing systems across the globe. Taking the Middle East, China and Japan as examples, Sonia explained that the goal would be to choose strategic partners in each region whose local knowledge and business prowess would allow Sensei Ag to iterate its technologies appropriately and serve local markets, bringing cost-competitive farming techniques and nutritious, local produce around the world.

Is AppHarvest the Future of Farming?

Special purpose acquisition companies, or SPACs, are red-hot right now, with investors clamoring to get into promising young companies.

In this video from Motley Fool Live, recorded on Jan. 28, Industry Focus host Nick Sciple and Motley Fool contributor Lou Whiteman discuss AppHarvest, one such SPAC that is looking to disrupt the agriculture industry. Here are the details on what AppHarvest wants to do, and a look at whether the company represents the future of farming.

Nick Sciple: One last company I wanted to talk about, Lou, and this is one I think it's -- you pay attention to, but not one I'm super excited to run in and buy. It was a company called AppHarvest. It's coming public via a [SPAC] this year. This vertical farming space. We talked about Gladstone Land buying traditional farmland. AppHarvest is taking a very different approach, trying to lean into some of the ESG-type movements.

Lou Whiteman: Yeah. Let's look at this. It probably wouldn't surprise you that the U.S. is the biggest global farm exporter as we said, but it might surprise you that the Netherlands, the tiny little country, is No. 2. The way they do that is tech: Greenhouse farm structure. AppHarvest has taken that model and brought it to the U.S. They have, I believe, three farms in Appalachia. The pitches can produce 30x the yields using 90% less water. Right now, it's mostly tomatoes and it is early-stage. I don't own this stock either. I love this idea. There's some reasons that I'm not buying in right now that we can get into. But this is fascinating to me. We talked about making the world a better place. This is the company that we need to be successful to make the world a better place. The warning on it is that it is a SPAC. So it's not public yet. Right now, I believe N-O-V-S. That deal should close soon. [Editor's note: The deal has since closed.] I'm not the only one excited about it. I tend not to like to buy IPOs and new companies anyway. I think the caution around buying into the excitement applies here. There is a Martha Stewart video on their website talking up the company, which I love Martha Stewart, but that's a hype level that makes me want to just watch and see what they produce. This is just three little farms in Appalachia right now and a great idea. This was all over my watchlist. I would imagine I would love to hold it at some point, but just be careful because this is, as we saw SPACs last year in other areas, people are very excited about this.

Sciple: Yeah. I think, like we've said, for a lot of these companies, the prospects are great. I think when you look at the reduced water usage, better, environmentally friendly, all those sorts of things. I like that they are in Appalachia. As someone who is from the South, I like it when more rural areas get some people actually investing money there. But again, there's a lot of execution between now and really getting to a place where this is the future of farming and they're going to reach scale and all those sorts of things. But this is a company I'm definitely going to have my radar on and pay attention to as they continue to report earnings. Because you can tell yourself a story about how this type of vertical farming, indoor farming disrupts this traditional model, can be more efficient, cleaner, etc. Something to continue paying attention to as we have more information, because this company, like you said, Lou, isn't all the way public yet. We still got to have this SPAC deal finalized and then we get all our fun SEC filings and quarterly calls and all those sorts of things. Once we have that, I will be very much looking forward to seeing what the company has to say.

Whiteman: Right. Just to finish up along too, the interesting thing here is that it is a proven concept because it has worked elsewhere. The downside of that is that it needed to work there. Netherlands just doesn't have -- and this is an expensive proposition to get started, to get going. There's potential there, but in a country blessed with almost seemingly unlimited farmland for now, for long term it makes sense. But in the short term, it could be a hard thing to really get up and running. I think you're right, just one to watch.

October 7th Webinar - Harnessing The Growing Synergy Between Space Farming and Indoor Agriculture

OCTOBER WEBINAR SCHEDULE

Harnessing The Growing Synergy Between Space Farming & Terrestrial Indoor Agriculture

OCTOBER 7, 2020 | 2-3 PM EDT

What Do Space Farming, Greenhouse Equipment

& Triple Bottom Line Farms Have In Common?

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THEY'RE ALL PART OF THE FREE OCTOBER WEBINAR SCHEDULE >>>

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Moderator:

Dr. Joel Cuello, Professor of Biosystems Engineering at The University of Arizona and Vice Chair of the Association for Vertical Farming

Panelists:

Dr. David Bubenheim, Senior Research Scientist, NASA Ames Research Center
Ralph Fritsche , NASA Space Crop Production Project Manager.
Dr. Gary Stutte, President, SyNRGE

Over the decades there has been the evolution & transformation of biologically-based life support innovations that have now been adopted in today's global vertical farming industry. And, the emergence of Industry 4.0 innovations -- from data analytics to automation to AI -- is certainly helping launch vertical farms into their exponential advancements.

All these set the stage for synergistic public-private partnerships for successful implementation of biologically-based life support systems for long-duration manned missions on the Moon and on Mars -- and all their powerful innovation multiplier effects extended further for application in the terrestrial vertical farming industry. Hosted by the Association For Vertical Farming, our panel will be delving into the various aspects of such brave and exciting scenarios, both present and future.

SAVE YOUR FREE SPOT

OCTOBER 21, 2020 | 2-3 PM EDT

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Why Does Greenhouse Equipment Need To Be Simple?

What is the number one thing to look for in commercial horticulture and agriculture equipment? Simplicity. The best-selling & most successfully used products are easy to learn, easy to use and easy to fix. This is not to say that they are actually simple. But, they are engineered with simplicity in mind.

Why is that so important in commercial horticulture? Our panel will explore why its so important for key equipment components to be simple and discuss what characteristics to look for in lighting, irrigation, sensors & more.

MODERATOR
Chris Higgins, President & General Manager, Hort Americas LLC & Owner, UrbanAgNews

PANELISTS
Paul Brentlinger, President, Crop King Inc.
Dr. Nadia Sabeh, President & Founder, Dr. Greenhouse
Isaac Van Geest, Sales, Zwart Systems

SAVE YOUR FREE SPOT!

OCTOBER 29, 2020 | 2-3 PM EDT

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BUILDING SUSTAINABLE TRIPLE BOTTOM LINE FARMS

During this insightful and inspiring session our moderator and panelists will discuss:

• The concept of the Triple Bottom Line: People, Planet and Profits

• The B-Certification process and reporting

• The contributions indoor farms can make according to the Triple Bottom Line

• Lessons learned from sustainable indoor farms that apply to all forms of indoor farming & more.

Moderator

Eric W. Stein, Ph.D., Executive Director of the Center of Excellence for Indoor Agriculture and Associate Professor of Business at Penn State

Panelists:
Dave Nichols, Director of Strategy, AppHarvest
Alexander Rudnicki, Senior Project Manager/ Plant Manager, Aerofarms

This session is hosted by Center of Excellence for Indoor Agriculture, whose mission is to accelerate the global transition to indoor farming production methods that are safe and sustainable and to empower indoor and vertical farmers with the knowledge, tools, and resources to build profitable businesses.

SAVE YOUR FREE SPOT!

Indoor Ag-Con, 950 Scales Road, Building #200, Suwanee, GA 30024, United States

Indoor Ag-Con Las Vegas 2019

February 25, 2019

7th Annual Las Vegas Edition Heads To Red Rock Resort With Expanded Educational Conference And Exhibit Floor Offerings

LAS VEGAS, NV (February 24, 2019) – Indoor Ag-Con, the premier event covering the technology of growing crops in indoor systems using hydroponic, aeroponic and aquaponic techniques, heads to Red Rock Resort from May 22-24, 2019 for its 7th annual Las Vegas edition. Themed “Growing the Future,” this year’s event moves to a new location and welcomes a number of new features, including a special hemp spotlight, exclusive white paper release, expanded exhibition floor and conference schedule.

“Our ‘Growing the Future’ theme celebrates the tremendous growth potential we see for indoor agriculture,” says Nancy Hallberg who, along with other event industry veterans Brian Sullivan and Kris Sieradzki, acquired Indoor Ag-Con LLC from founder Newbean Capital in December 2018. “From timely conference tracks to the top names and emerging leaders joining our show floor, this will be the place to get a first-hand look at the industry’s breaking trends and innovations.”

Show highlights for Indoor Ag-Con Las Vegas include:

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HEMP SPOTLIGHT JOINS CROP AGNOSTIC, TECH-FOCUSED OFFERINGS – New for 2019, Indoor Ag-Con will put a special spotlight on the hemp sector – from grower through manufacturer – on the show floor and in conference programming. What’s more, Indoor Ag-Con provides a venue for those working with any crop — from leafy greens and mushrooms, to alternate proteins, to medicinal crops — to meet and exchange ideas. At a time of rapid technology-led progress in indoor growing, the event will also showcase the latest innovations in artificial intelligence, LED lighting and control systems.

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WHITE PAPER RELEASE: AUTOMATION, AI & THE NEXT GENERATION OF INDOOR AGRICULTURE –Indoor Ag-Con began releasing white papers at its events in 2015, and has provided participants with an exclusive hard copy of the newest white paper every year since. A culmination of months of research by Contain, Inc. and other Indoor Ag-Con team partners, the 2019 white paper, Automation, AI & The Next Generation of Indoor Agriculture, will be released in hard copy to all attendees during the Las Vegas event. To contribute or to receive more information, send a message to hello@indoor.ag

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NEW LOCATION: RED ROCK RESORT – As a great trade show city, Las Vegas is hard to beat with its easy access, world class dining, top name entertainment and more. Previously held at the Las Vegas Convention Center, Indoor Ag-Con heads to Red Rock Resort for 2019. Nestled in the amber glow of the beautiful Red Rock Canyon, the new location provides the perfect backdrop for this year’s event and Indoor Ag-Con attendees and exhibitors can take advantage of discounted rates when they book through the event hotel block. Visit the show website for details – www.indoor.ag

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FIVE TRACKS, 40+ INDUSTRY LEADING SPEAKERS – The Indoor Ag-Con conference agenda will bring together 40+ industry-leading speakers offering a deep dive into five key tracks: Grow Equipment, Crop Selection, Customers & The Supply Chain; Business; Policy and Societal Impact.

The full conference schedule will be posted on the event website soon – www.indoor.ag

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EXPANDED EXHIBIT FLOOR & NETWORKING OPPORTUNITIES – Attendees will have the chance to meet face-to-face with some of the biggest names in the business as well as emerging innovators. From equipment and accessories to vertical farming and greenhouse solutions to technology providers, lighting and climate control systems, the industry gathers here. Indoor Ag-Con also offers a wide range of networking opportunities, including evening drinks receptions on May 22 and 23, continental breakfast and lunch gatherings, as well as extended networking breaks between conference sessions.

QUICK FACTS:

WHEN: Wednesday, May 22 – Friday, May 24, 2019 (Exhibits Open May 22-23)
WHERE: Red Rock Resort, 11011 W. Charleston Blvd, Las Vegas, NV 89132
INFO: For information on exhibiting or attending visit www.indoor.ag or email hello@indoor.ag

ABOUT INDOOR AG-CON LLC
Founded in 2013, Indoor Ag-Con has grown into the premier event in indoor agriculture, the practice of growing crops, raising fish and insects in indoor systems, using hydroponic, aquaponic and aeroponic techniques. Its events are tech-focused and crop-agnostic, covering produce, legal cannabis, alternate protein and non-food crops. It hosts events in Las Vegas, Singapore and the US East coast. In December 2018, three event industry professionals – Nancy Hallberg, Kris Sieradzki and Brian Sullivan – purchased Indoor Ag-Con LLC from Newbean Capital, so setting the stage for further expansion of the events globally. More information: https://indoor.ag

• TAGS Conference Indoor Ag Con Indoor Ag Technology Technology